Former anti-corruption agency boss Halakhe Waqo has been dragged into the Kenya Medical Supplies Authority (Kemsa) scandal involving supply of Covid-19 equipment.
This was after it emerged that Sh347 million paid to a firm for supply of face masks was done through a bank account Waqo, the former CEO of the Ethics and Anti-Corruption Corruption (EACC), co-owns.
Aszure Commercial Services, owned by Zubeda Nyamlondo Ngobi and Phanice Adhigo Onditti, supplied KN95 face masks worth that amount to Kemsa.
Nyamlondo – who was casually dressed in a jungle green dress, a red marvin hat and a matching face mask when she appeared before the Public Investment Committee (PIC) – took the committee in circles, at times contradicting herself and prompting members of the watchdog to conclude she could be a proxy to some powerful individuals.
Waqo’s name popped up following a sustained probing by the committee members for the witness to provide details of ownership and how the firm sourced for funds to finance such large contract having only done business worth Sh8 million in the previous years.
Consequently, PIC yesterday resolved to summon Waqo to explain his link to the firm, which, before the outbreak of the Covid-19 pandemic, was dealing in furniture supplies.
Earlier, the witness told the committee chaired by Mvita MP Abdulswamad Nassir that she saw Health CS Mutahi Kagwe on a television broadcast saying the country was in need of Covid-19 equipment before she proceeded to Kemsa offices in Industrial Area.
She narrated how she walked into the offices – without any document – and met the suspended procurement director Charles Juma, who she verbally told of the firm’s capacity to supply the masks.
Juma, she said, gave her the go ahead to deliver samples before she got a commitment letter to supply the masks.
“We were pre-qualified supplier for furniture and office fittings, but we had never supplied Kemsa at all before this particular contract,” Nyamlondo told the team.
She added: “Because we had a pre-qualification, I walked there and met procurement director Charles Juma and told him I wanted to supply masks. I went back the following day with samples. There was no written document.”
It was after the firm was handed a commitment letter to make supplies that directors realised they did not have the money. They started knocking doors for help before Waqo came in to act as a security for a loan from a local bank.
“We went to a few people to get a loan, but it was not coming through. The bank wanted security before giving us a loan. It needed an assurance and that is when we wrote a letter to have him as a signatory,” Nyamlondo said.
But members raised suspicion over the deal, claiming the directors could be acting as proxies to other people after it emerged the firm initially held an account with another bank and only opened the new one for purposes of the loan whose issuance was facilitated by Waqo.
“You have said the reason Halakhe came in was because the bank needed security? I think we would consider inviting him to appear before this committee,” said Mr Nassir.
Several times the committee members got impatient with the witness when she kept contradicting herself on the company’s dealings.
Nassir reminded Nyamlondo that she could end up being cited for lying on oath.
“You are either extremely brave or naïve. Let me remind you that if you want to lie, you better have good memory. Are you aware of the repercussions of not telling the truth or trying to take the heat on behalf of another person?” he said.
Nairobi Woman Rep Esther Passaris claimed they could have been duped into listening to the wrong person, saying the director appeared to have little knowledge of the firm.
“You are here protecting people you know very well. You are a small fish being used by a big fish. I’ve a feeling this is a company of the Covid-19 billionaires,” said Ms Passaris.
She added: “I think we have the wrong person here, we need to invite Waqo.”
Kaloneni MP Paul Katana said the committee should grill Waqo over his link with the firm. “Now that Waqo has been mentioned by the witness, I think we should summon him to appear before this committee. How he became the signatory to the bank account when he is not listed as one of the directors of the said company is of interest,” said Katana.
It also emerged that 71 firms that traded with Kemsa may have defaulted on their taxes.
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